Daily Stock Report

Nexgen Energy Ltd. - (NXE.TO) - May 6, 2021 

In the April 8th issue of Equity Leaders Weekly, we mentioned that the price of uranium was starting to climb, and yesterday we saw this commodity price recovery translate over into gains for uranium stocks such as Nexgen Energy (NXE.TO). Nexgen, which was recently added to the SIA S&P/TSX Composite Index Report, continued to bounce back from a quick dip into the yellow zone and climb within the Green Favored Zone, moving up 30 spots to 6th place as the shares jumped 12.5%. 

Nexgen Energy (NXE.TO) staged a major breakout yesterday, blasting through the top of a $4.00 to $5.50 sideways channel which had been in place since February, ending a consolidation phase and signaling the start of a new advance. 

Measured moves from the recent trading range suggest next the next potential upside resistance zone appears in the $6.75 to $7.00 area. Initial support moves up to the $5.50 breakout point from $5.25. 

Last month, Nexgen Energy (NXE.TO) shares broke out over $5.20, ending a consolidation phase by completing a bullish Spread Triple Top pattern. This month, the shares have confirmed the start of a new advance with a breakout over $5.40 to a new all-time high, completing a bullish Double Top pattern. Horizontal and vertical counts suggest that next upside resistance on trend may potentially appear near $6.32, $6.84, $7.55 and $7.86. Initial support appears near $5.20 based on a 3-box reversal. With its bullish SMAX increasing to 8, NXE.TO is exhibiting near-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.